Vinamilk sets record revenue plan for 2023, over 63,300 billion VND

On April 25, 2023, Vietnam Dairy Products Joint Stock Company ( Vinamilk ) held the 2023 General Meeting of Shareholders (GMS). This is the meeting that concludes the first year of the 5-year strategic period 2022-2026.

2022 is the year run by the new Board of Directors elected from the 2022 General Meeting of Shareholders. During the year, Vinamilk continued to increase its brand value to 2.8 billion USD, an increase of 18% over the same period, becoming the 6th largest dairy brand globally (according to Brand Finance) and maintaining its ranking in the Top 40 largest dairy enterprises globally in terms of revenue (according to Plimsoll).

In 2022, the total consolidated revenue will reach VND 60,075 billion and the profit after tax will reach VND 8,578 billion. Of which, domestic net revenue/export revenue/foreign branches will reach VND 50,704/4,828/4,424 billion respectively. Maintain a high level of cash dividends for shareholders in 2022, the total dividend amount for the year is VND 8,046 billion, accounting for 94% of the consolidated profit after tax allocated to the company's owners.

The Board of Directors for the 2022-2026 term chaired the 2023 General Meeting of Shareholders, which was held online.

In particular, 2023 marks the 20-year milestone of successful equitization of this enterprise, with revenue increasing 15 times and profit increasing 13 times compared to the official equitization time in 2003. The total contribution to the state budget since then is nearly 55,300 billion VND, always in the group of enterprises paying the highest cash dividends to shareholders, with the accumulated amount from the time of listing in 2006 to present is 76,228 billion VND.

Important contents agreed upon at the congress:

2023 target plan

The company sets a revenue target of VND 63,380 billion for 2023, an increase of 5.5% over the same period, and a pre-tax profit target of VND 10,496 billion, equal to 2022. The company aims to maintain its leading market share, continue to expand the international market, consolidate the distribution system, invest in a system of factories and farms, and simultaneously implement domestic and foreign investment projects.

Regarding business channels: Continuing the good growth momentum of 2022 from Vietnamese Milk Dream stores, revenue growth of over 20%, special customer channel with revenue growth of over 10%, e-commerce channel also continues to record growth of over 30%, Vinamilk will continue to expand the distribution system, invest in Vietnamese Milk Dream channel (including store system and online sales channel).

The company will continue to promote R&D activities, launch new products, improve quality with an orientation not only on nutritional value but also added value for consumers.

Ms. Mai Kieu Lien, General Director, Member of the Board of Directors of Vinamilk answered shareholders' questions at the discussion session.

Vinamilk also improves management capacity and operational efficiency at member companies, and coordinates to promote the implementation of key investment projects such as: Hung Yen Dairy Factory, Beef Breeding and Processing Project (Vinabeef), and Moc Chau Milk Paradise Complex Project.

Effective investment in foreign branches: Driftwood's (USA) 2022 revenue recorded a growth rate of over 30%, while Angkormilk (Cambodia) recorded over 10%. At the same time, the company also completed the Lao-Jargo Dairy Farm Complex (Laos) project and invested in expanding factories and farms in Cambodia with an expected investment capital of 42 million USD.

Dividend:

In 2022, Vinamilk's General Meeting of Shareholders approved a dividend payment plan of VND 3,850/share. The company has made two interim payments, VND 1,500/share on August 19, 2022 and VND 1,400/share on February 28, 2023. Thus, Vinamilk will pay the remaining dividend of VND 950/share in the third installment, expected on October 5, 2023. The total dividend amount for the year is VND 8,046 billion.

In 2023, Vinamilk plans to use at least 50% of consolidated after-tax profit to pay dividends, expected to pay interim dividend for the first period of 2023 on October 5, 2023 at VND 1,500/share.

At the congress, other contents about the 5-year strategy were also updated by Vinamilk to shareholders.

Product quality and brand value:

Currently, Vinamilk is the first company in Asia to own an entire brand of infant formula milk that has won the Purity Award for safety and purity in the US - the most rigorous award from the Clean Label Project for purity applied to products for infants and young children. In addition, Vinamilk Green Farm sterilized fresh milk products and Vinamilk 100% Organic are also the first fresh milk products in the world to achieve the Clean Label Project certification for brands that not only have transparency in products from input materials to finished products, but also in product labeling.

Vinamilk was honored as a National Brand for the 7th consecutive time, meaning it has held this great title for 14 consecutive years from 2010-2024. At the same time, Vinamilk was also honored as the Most Valuable Brand in the F&B industry (Forbes Vietnam).

On sustainable development:

Joining hands with the Government towards the commitment to Net Zero by 2050, Vinamilk has implemented tree planting activities in the period 2023-2027 with the Ministry of Natural Resources and Environment.

Vinamilk was voted as one of the 5 "Enterprises implementing the circular economic model and responding to climate change" for the 7th consecutive year, and was honored in 2 major categories at the 2022 Global CSR & ESG Conference.

This year's Vinamilk General Meeting of Shareholders was held online using FPT's virtual technology, creating conditions for shareholders to conveniently attend with a new, increasingly upgraded experience.

Detailed content of the results of Vinamilk's 2023 General Meeting of Shareholders in the meeting minutes is published on the company's website here: https://www.vinamilk.com.vn/vi/dai-hoi-dong-co-dong and the reports: Annual Report 2022 and Sustainable Development Report 2022 ( here ).

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